Simple Interest Questions

FACTS  AND  FORMULAE  FOR  SIMPLE  INTEREST  QUESTIONS

 

 

1. Principal: The money borrowed or lent out for a certain period is called the principal or the sum.

 

2. Interest: Extra money paid for using other's money is called interest

 

3. Simple Interest (S.I.) : If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest.

Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then,

(i)  S.I=P×T×R100

(ii)  P=100×S.IR×T ; R=100×S.IP×T and T=100×S.IP×R

Q:

A person borrows some money for 4 years at the rate of simple interest. If the ratio of principal and total interest is 5 : 1, then what is the rate ( in percentage) of interest?

A) 5 B) 25
C) 10 D) 20
 
Answer & Explanation Answer: A) 5

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2 946
Q:

Dev lent Rs. 8000 to Jairam for 17 years and Rs. 4700 to Karnik for 16 years on simple interest at the same rate of interest and received Rs. 21120 in all from both of them as interest. The rate of interest per annum is:

A) 10.5 percent B) 10 percent
C) 11 percent D) 11.5 percent
 
Answer & Explanation Answer: B) 10 percent

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0 928
Q:

What is the rate of interest if simple interest earned on a certain sum for the 3rd year is Rs 1,750 and compound interest earned for 2 years is Rs 3622.5?

A) 8 B) 9
C) 10 D) 7
 
Answer & Explanation Answer: D) 7

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2 921
Q:

A sum of Rs 400 becomes Rs 448 at simple interest in 2 years. In how many years will the sum of Rs 550 amounts to Rs 682 at the same rate?

A) 2 B) 3
C) 3.5 D) 4
 
Answer & Explanation Answer: D) 4

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1 919
Q:

Deksha borrowed Rs. 500 at 5% per annum S.I. What amount (in Rs.) will she pay to clear her debt after 4 years?

A) 150 B) 650
C) 600 D) 100
 
Answer & Explanation Answer: C) 600

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7 915
Q:

Simple interest on a sum for 5 years is equal to 20% of the principal. In how many years interest will be equal to the principal?

A) 20 B) 25
C) 15 D) 16
 
Answer & Explanation Answer: B) 25

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2 893
Q:

How much simple interest will Rs. 4000 earn in 18 months at 12% per annum?

A) Rs.216 B) Rs.360
C) Rs.720 D) Rs.960
 
Answer & Explanation Answer: C) Rs.720

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2 891
Q:

The Simple Interest(SI) for 16 years on an amount at particular rate is Rs 10000. If the principal is doubled at an interval of every 4 years and the rate is tripled at every such in terval, find the new Simple Interest(SI)

A) 632100 B) 689620
C) 602260 D) 647500
 
Answer & Explanation Answer: D) 647500

Explanation:
Let New SI be X

10000/16 = X/4(1*1+2*3+4*9+8*27)

10000/16=X/4(1+6+36+216)

X=647500

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